With Microsoft officially replacing the Nokia brand, all future phones from the company will come with Lumia branding.
Additionally, the existing phones’ websites and social network accounts are expected to go through the transition in the following days.
How Will New Devices Look?
The most noticeable change is that the name Nokia doesn’t appear anywhere. The new design will incorporate the name and logo of Microsoft on the front and the back of the devices. At the rear, the word ‘Microsoft’ follows the familiar logo that looks a lot like the Windows 8 logo. The rebranding of the devices is the natural progress, since all Nokia’s devices are now produced by Microsoft. With the rebranding, Lumia becomes part of the family that includes Windows, Surface and Xbox.
The Challenge to Continued Growth
While the logic suggests that the biggest challenge for Microsoft is to compete with the Android and iOS devices, the reality might suggest otherwise. According to statistics, the company sold 9.3 million Lumia handsets in the recent quarter, which is a small increase, considering that in the same period last year, the company sold 8.8 million Lumia Windows Phones. However, the increase in sales was driven by sales in Europe, where Nokia has been one of the top brands in the past 15 years. Now, Microsoft must prove that the Lumia brand can build on the success of the Nokia brand in Europe. Nokia’s success in Europe was mostly due to lower priced devices. Until 2007, Nokia was the world leader in cell phones. However, everything changed once Apple unveiled the iPhone and later on Samsung started producing smartphones. Latest statistics by Strategy Analytics show that Windows holds just 2.5 percent of the smartphone market. Most of the Windows phones come from Nokia.
Basic Phones Will Continue to Use the Brand Nokia
While the Nokia name is going to disappear from high end premium smartphones, basic entry handsets will continue to use the brand name Nokia. For example, phones such as the Nokia 130 will continue to be Nokia 130. Microsoft does have a 10 year license to use the brand Nokia on basic phones, and has every intention to do so in the future. The company also said it will continue to produce entry level handsets with only basic functions. According to Tuula Rytila, Senior VP of Marketing for Phones at Microsoft, the company licensed the brand Nokia exclusively for entry level phones. Entry level handsets made Nokia so successful, and Microsoft would be wise to take advantage of it.
What Happens With Current Nokia Phones?
Do not worry; if you’ve purchased a Nokia Lumia handset in the past 2 years, you are secured. When Microsoft made the transition from Windows Phone 7 to Windows Phone 8 in 2012, the company assured users that their devices would be supported for at least 18 months with new updates. During the announcement for rebranding, the company again assured current users that their older Nokia Lumia devices will continue to get support and new updates.
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